Wednesday, July 25, 2007

New Zealand Dollar Falls as Bollard Signals Rate Increase May Be the Last

(Bloomberg) -- New Zealand's dollar fell and bonds
rose after central bank Governor Alan Bollard signaled today's
interest-rate increase may be the last.

The currency declined against 16 of the most-active
currencies as Bollard said the four quarter-percentage point
moves in rates this year to a record 8.25 percent should be
enough to contain inflation. He said the 28 percent rally in New
Zealand's dollar against its U.S. counterpart in the past 12
months is ``not sustainable.''


Read more at Bloomberg Currencies News

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